Unsecured Loans without Collateral: All You Need to Know to Get up to $20,000

Though many of us are feign to admit it, the reality of economic hardship has caused many people to live tight within their means. In other words, each month’s bills are reliant on the paychecks received. Should the unthinkable happen and a new expense crop up, most of us are unprepared to take care of it. Savings have dried up and credit cards are maxed out. When this happens, the only hope that one has is attempting to find a loan to help alleviate financial strain.Unsecured loans are loans available to borrowers without the need for collateral. In other words, rather than risk one’s home or car on a loan, unsecured loans require only a signature to be distributed. Also known as signature loans, unsecured loans can provide relief to those facing economic emergencies or peace of mind to those with no savings.Getting Unsecured Loans for up to $20,000Depending on a borrower’s income, current debts, and credit history, finding an unsecured loan for up to $20,000 is possible. These loans are given based on a number of factors, so making sure that you are qualified is important. Income is the first issue to consider. Look at the following:A $20,000 unsecured loan that you repay over the course of 5 years with a low interest of 6% will equal monthly payments of approximately $390. If your interest rate is higher, say, 11%, your payments jump up to around $435 per month.When lenders evaluate your ability to take an unsecured loan, they will need to know that you have the income available to comfortably repay your loan each month. Generally, this means that you need flexibility in your monthly payments, which is why many people use unsecured loans to consolidate credit card debt, for example, which has the added benefit of freeing up monthly expenses.Why Credit MattersIn addition to the income qualifications for an unsecured loan, lenders will also want to review a borrower’s financial history in the way of credit. A bad credit score tells lenders that you have had problems managing finances in the past. This means that you may have a hard time managing the payments on your new loan in the future. Therefore, especially as it pertains to unsecured loans with no collateral, lenders are not likely to extend $20,000 loans to those with bad credit. Instead, consider looking for a secured loan or finding a cosigner with a better credit score to help you get the money you need.Places to Find an Unsecured LoanLooking for an unsecured loan is easier now than ever before. With the rise of the internet and online lenders, borrowers are no longer pigeonholed into only taking whatever is offered by their local brick and mortar banks. Instead, through internet searches and online loan brokers, borrowers can get several quotes from several reputable institutions. Then, borrowers can review the offers and pick the one that is best suited for their own needs and abilities.Financial Relief When You Need ItIn today’s tough economic environment, finding financial relief when you need it is important. That is why looking into unsecured loan options, which do not require collateral, can help you get the most money at the least expense.